Resources for Basel II Capital Accord (Basel II)

Banks brace for Basel II

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Bankers from around the world were about the only ones who paid much attention to a meeting in Basel, Switzerland, 20 years ago. It was there that international financial regulators decided banks would be required to keep a certain amount of cash on hand to protect against unexpected losses.

If you're wondering why this matters, consider the ongoing credit crunch. Had the banks been required to set aside a bit more capital to fund their risky subprime loans, they might not be suffering from the big losses that we mentioned at top of the program.

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